The Conference Board of Canada is warning of "a lengthy slowdown" in Canada's residential construction industry with profits, already off 22 per cent in 2007, falling for the next two years.
The longest housing boom in the post-war era is now "out of breath," following spectacular growth in the number of homes built and the prices paid for them, the board said in a report released Thursday. "Satiated pent-up demand and slower economic growth is leading to what is expected will be a long slowdown in the housing market," the report says.
After years of "relentless" house-price increases, declining affordability will be one of the primary factors weighing on the market, board economist Valerie Poulin said in an interview.
Source: Via Edmonton Real Estate
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#1 It is true that this boom is
It is true that this boom is here for ages and it has to be end soon but since I am working as a Toronto real estate agent and following our figures for past years we are still doing an accelerated growth. Also I have read through a report recently issued by the IMF and it stated that Canadian real estate market is one with a the best growth prospects in future from all the western economies. But maybe reason is that all other economies are in stagnation.